How do you usually save money?

[toysmall]

I just had a job, not much salary, every month is not enough use! I want to consult save money skills. Happy New Year

[artwest]

The easiest way to save money is to have a direct deposit out of each check go into an account.

Many financial "experts" say you should pay yourself first. They usually suggest 10%.

In my opinion, it is most important to be debt free first. Then set aside money for an emergency fund of 3-6 months expenses. Then start saving for retirement.

[bjl584]

Originally Posted by artwest

The easiest way to save money is to have a direct deposit out of each check go into an account.

Many financial "experts" say you should pay yourself first. They usually suggest 10%.

In my opinion, it is most important to be debt free first. Then set aside money for an emergency fund of 3-6 months expenses. Then start saving for retirement.

I agree with a small tweek. My strategy was to save an EF and pay down debt at the same time. My logic being that if I used all my money to pay down debt and didn't have an EF, then what happens if I have an emergency during that time frame? My only option would be to incur more debt to address the emergency. If I saved and paid down debt simultaneously, then at least I would have some cash cusion to fall back on.

[maat55]

The hardest thing to do is make the decision to prioritize saving first. Once you make it your top priority, the rest will become easy. Everytime you get paid your first desire should be to set aside a determined amount. If your mind is right, you will faithfully only use those funds for the reason you saved them.

As for the mechanics of saving, if your job has a 401k you will want to at least set aside for the match( if your company offers a % up to 6% you will want to have them deduct 6% from your check towards your 401k).

Next, you should set aside at least 500 to 1000 for an emergency fund.

Next would be to start paying off any current debts one at a time(pay the minimums on all but attack one with all extra funds).

After debts are gone, you should fund a Roth with at least an additional 5% of your income.

Next, it would be wise to establish a savings fund for your major consumer purchases such as: autos, TV's etc.

If you were to post your income and expenses, we could better help you.

[toysmall]

Originally Posted by bjl584

I agree with a small tweek. My strategy was to save an EF and pay down debt at the same time. My logic being that if I used all my money to pay down debt and didn't have an EF, then what happens if I have an emergency during that time frame? My only option would be to incur more debt to address the emergency. If I saved and paid down debt simultaneously, then at least I would have some cash cusion to fall back on.

good idea! Thank you for your comment .